BS"D

Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************

PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

At the Open, the tape presented us with a massive Anomaly Signal off
the Close/Pivot, the "trade of the day".

By mid-morning, Price Action crossed above the R1 Pivot Level, and
turned sideways all the way to EOD.

TGIF!!!

******************************

E-mini
Thursday June 18, 2009

1 = Thursday day's morning session opens with a massive Anomaly Signal (Overnight, bottom left chart), 2-bar
Reversal, through the Pivot.

A = Since the Signal was DVS-based, we were most happy for this retest 123 continuation "S" Signal, whereupon
we entered aggressively. By the close of the candle, we moved the stop up under the Mid, for immediate,
locked-in profits! Nice!

B = Enormous DVS (pink arrow) drives an enormous white candle through the 50% Fib Retracement (pink dotted line).
We now have our prognosis/answer: Retracement and Recovery; not Reversal

The position is in serious violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Jump a mental
stop to Giveback level.

C = Large, white, inverted (Bear) Dragonfly crosses above the R1, and temporarily spikes through the High. Per
PMT stop rules, move the profit-locking stop under the R1.

Although the long top wick threatens failing Momentum, this is a 2-candle 123 continuation, and thus, an
opportunity to add contracts.

NOTE: Twin Towers Volume (pink arrow) indicates stall/sag/retest
is coming next, so perhaps it is better (more risk-conservative)
to wait to add contracts.

D = Price Action flickers down to briefly retest the Resistance-turned-Support at the R1, and then instantly to
retract. Our stop was safe, and the tape has presented us with another 2-candle 123 opportunity to add contracts.

E = DVS (pink arrow) recovery Volume blasts a large, white, inverted (Bear) Dragonfly through the High (before
the top wick retraces almost a full 2 points).

In light of = C, this might well be an Exit Now! situation.
Alternately, move the profit-locking stop under the High.

Next candle is a Doji/Black Volume Bar of Death, so the instant the next candle after that shows red, Exit Now!
+/- 7.25 points

2 = Doji Sandwich, "P" Signal, just within range of, but behind, the R1, becomes a Double top (green arrow), and
breaks out. Just in time, per our criterion.

F = Massive breakout candle rips through the R1, where we are pulled in. Initial stop advances above the R1.

R1 retest vaguely gives permission to add contracts. Dunno if I would?!?

G = Large red spinning top. Per our rules, move the profit-locking stop above the high of the candle.

The next (white) candle retraces >62% of the Spinning Top, for a mid-air Reversal, Exit Now! Signal. SCRATCH!!!

3 = Another Reversal Signal behind the R1. Volume has effectively died off for lunchtime, and it's a long way
for Gravity and Rubber bands to pull Price Action to the Pivot/Close. Let it go.

And the day turns sideways atop the R1, offering us no further trades through EOD.

PERSPECTIVE
(Daily, bottom right chart)

Price Action is still outside the LT Trend Channel (green channel lines).
Wednesday's test of the 62% Fib Retracement Level (pink dashed line), has
been abandoned, and Bullish Price Action has returned to levels above the
50% Fib Retracement Level (pink dotted line).

Our question seems to be resolved:

Were it not "anything goes" Friday, we'd expect this
to probably be the completion of the pullback, setting
up a running start at a Bull charge (as we predicted a
few days ago). But it IS Friday!

BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the tape, not my prognosis!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Thursday's PMT Chart: